Sales of new launched homes plunge 54% over the week

Developers cleared only 116 units this past weekend, says Nomura.

According to Nomura Research, over the past weekend, as most recent projects enter their final stage of sales, with fewer stocks available, developers’ sales were only 116 units, down 54% w-w.

Here's more from Nomura:

SHKP launched the final batch of 82 units at Century Gateway (Phase 1) and through this weekend, it has now sold more than 1,000 units (93% of Phase 1’s 1,074 units) with an average selling price of HKD8,544psf at cumulative proceeds of HKD7bn. Other notable sales this weekend include 17 units at Nan Fung/Sino/K. Wah’s Providence Peak, 7 units at HLD/NWD’s Double Cove and one unit at Wheelock’s Kadoorie Hill.

Pre-sales preparations continue in earnest for HLD/NWD’s The Reach in Yuen Long (2,580 units). The price list will be released during this week and the show flats are expected to be opened soon. Other upcoming launches to watch include Nan Fung/Sino/K. Wah’s The Graces (193 units) in Tai Po, Cheung Kong’s One West Kowloon (286 units) at Lai Chi Kok and HLD’s High Point (138 units) at Sham Shui Po. In the secondary market, activity remains stable but moderate. The Midland 35 housing estate volume index fell 8% w-w to 149 transactions last week. Potential home buyers continued to focus on developers’ new launches. Furthermore, recent home price gains have further buoyed home owners’ sentiment and secondary asking prices remain lofty.